Understanding Platinum Bullion Types

One of the primary reasons to invest in platinum is to further diversify an investment portfolio that already includes other precious metals. Like other precious metals, platinum often has a low correlation with other asset classes, such as stocks and bonds, which can be beneficial during extended periods of market volatility or with indicators showing signs of recession. The current platinum spot price is positioned in a way that could allow for significant returns.

During extended periods of record high inflation, some investors find precious metals to be an effective hedge, as a store of value and a way to preserve wealth. As inflation continues to climb, the real value of stocks and other investments can be negatively affected. However, platinum has a history of retaining value, and has, at times even increased in intrinsic value during inflationary periods. Platinum, along with other Platinum Group Metals (PGMs) like Palladium and Rhodium, offers investors an assortment of options for diversifying a precious metals portfolio. Most investors begin by narrowing their focus to a choice between buying platinum coins vs platinum bars. The price of platinum is influenced by industrial demand, which factors include changes in automotive production or mining supply, offering potential opportunities for investors.

Platinum Coins

Platinum coins are popular with investors and are minted by various countries. Coins are available in different industry standard weights, such as 1 oz, 1/2 oz, 1/4 oz and 1/10 oz. Examples include the American Platinum Eagle, Canadian Platinum Maple Leaf, and Australian Platinum Koala. These coins contain the specified weight and purity of platinum, making them a tangible and easily recognizable investment.

Coins carry slightly higher premiums compared to platinum bars, as this is the reflects the additional costs associated with their design, minting, legal-tender status and in some cases collectability. The premium is the amount you pay above the platinum spot price to the dealer.

Random Year platinum coins from various mints can offer an huge savings opportunity with lower premium than newly minted or specific year coins. Secondary market coins are highly liquid because their value primarily derives from their metal content rather than other factors. Some of the cheapest include commemorative coins that are available from the US Mint, Royal Canadian Mint, Perth Mint and other well-known manufacturers.

The higher premium for coins reflects their numismatic appeal, unique designs, collector demand, and mintage amount. These and other factors can add additional collectible or numismatic value beyond the intrinsic metal content.

Platinum Bars

Platinum bars offer the most cost-effective way to invest by platinum in a much wider range of sizes. Bars are minted by privately owned refineries and come in an assortment of sizes, typically ranging from 1 gram to as large as 1 kilogram. The most common purchase made by investors is the 1 oz platinum bar, which come from various refiners with a trusted lineage in the industry with much lower premiums compared to coins.

Bars provide investors with flexibility in choosing the specific weight that suits their investment goals and budget. Platinum coins, while still widely available, may have more limited options in terms of size and design variety. Fractional platinum bars are a practical way to begin to diversify and are an available lower cost alternative.

Platinum IRA

Platinum can also be included in a self-directed Individual Retirement Account (IRA) as part of a diversified retirement portfolio. By opening a platinum IRA, investors can hold physical platinum coins or bars within the IRA, providing potential tax advantages while keeping a trusted store of value in their retirement savings.

Platinum IRAs can offer potential tax benefits and contributions may be tax-deductible, potentially reducing your taxable income in the year of the contribution. The growth of funds within the IRA is tax-deferred, meaning you don't pay taxes on investment gains until you withdraw the funds during retirement. Roth Platinum IRAs, on the other hand, offer tax-free withdrawals in retirement, as contributions are made with after-tax dollars.

Including platinum in a retirement portfolio can provide diversification benefits, as it is a different asset class from traditional stocks, bonds, or cash and has its own unique supply and demand dynamics, which can offer additional protection against inflation and currency devaluation. Adding platinum to an IRA can help preserve wealth and hedge against economic uncertainties. It's always a good idea to do thorough research or consult with a financial advisor prior to making investment decisions.

Cheapest Platinum Bullion

Compare dozens of trusted and reputable online bullion dealers to find the cheapest prices for popular investment-grade platinum bars & coins. This tool will display platinum bullion sorted by the cheapest platinum price per ounce over spot price. Investors interested in stacking for extra weight will look for the cheapest platinum bullion.

The FindBullionPrices.com listings display the prices per coin or bar. The price displayed is based on the single quantity purchase. Additional discounts may be offered by individual dealers based on quantity purchases.